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Thailand takes a hit - TTG Asia

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OctOber 28 – NOvember 3, 2011 • ttg asia 17<br />

Malaysia’s improving leisure arrivals<br />

% Change Over Prior Year<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

-60%<br />

-80%<br />

Leisure-focused ADS channel results<br />

Net Reservations Net ADR Net Revenue<br />

Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11<br />

Sep 2011 Sep 2010 % change<br />

Net average length of stay (nights) 3.03 2.59 16.8<br />

Net average booking lead time (days) 49.16 38.45 27.8<br />

Data represents bookings from the leisure-focused alternative distribution system (ADS) channel, which<br />

consists of purely Internet bookings. This includes non-GDS online third-party channels or online travel<br />

agents primarily used by consumers. The data is stated on a date of booking basis, and a constant exchange<br />

rate is used for calculations in order to eliminate currency exchange rate fluctuations.<br />

The immediate impact of Japan’s March<br />

disaster on arrivals to Malaysia has lessened.<br />

As seen in the graph, leisure reservations<br />

from the alternative distribution<br />

channel (ADS) for the month of September<br />

are within 10 per cent of reservations<br />

made for September last year.<br />

Average daily rate (ADR) has fared better<br />

than bookings, rising back to prioryear<br />

levels in July and surpassing the prior<br />

year by double-digit percentage margins<br />

in August and September. It is the upswing<br />

in ADR growth, combined with improved<br />

booking performance, which has driven<br />

the strong revenue gains over the prior<br />

year seen in August and September.<br />

Japan arrivals are not back to levels<br />

prior to the crisis, but they are improving.<br />

Financial market stress placed on the global<br />

economy, however, is taking its toll on<br />

arrivals from Europe and the US. Malaysia<br />

also faces competition from neighbouring<br />

destinations like Singapore.<br />

One positive attribute that bodes well<br />

for Malaysia’s ongoing performance is<br />

the average number of nights per trip or<br />

length of stay (LOS). Malaysia’s average<br />

leisure LOS in September of 3.03 nights<br />

is greater than the global average of 1.97<br />

nights and the 1.98 average outside North<br />

America. What’s most notable is that<br />

while the global average number of nights<br />

has trended approximately the same as<br />

last year, Malaysia’s has increased.<br />

Another optimistic sign is its average<br />

booking lead time of 49.16 days in September,<br />

exceeding the global average of<br />

16.43 days and the average outside North<br />

America of 25.64 days. Average booking<br />

lead time also grew by 27.8 per cent<br />

over last September, a dramatically greater<br />

margin than the global average increase of<br />

3.2 per cent.<br />

In this tie-up with <strong>TTG</strong> <strong>Asia</strong>, Pegasus<br />

Solutions provides an up-close look at<br />

destination-specific hotel performance.<br />

Data and analysis is based on over four<br />

billion monthly transactions processed<br />

through Pegasus’ hotel switch technology.<br />

For regional trends, visit www.pegs.com/<br />

thepegasusview.<br />

P17 RW Genting_SA ok.indd 1 24/10/11 9:13 AM<br />

Hotels, resorts jump on high-end bandwagon<br />

By N. Nithiyananthan<br />

Malaysia’s goal of becoming a high-income<br />

nation by 2020 – with the help of<br />

tourism – is seeing hotels and resorts taking<br />

steps to move up the value chain.<br />

Tourism Minister, Dr Ng Yen Yen, said:<br />

“Tourism Malaysia has set its sights on the<br />

target of receiving 36 million tourist arrivals<br />

by the year 2020 and RM168 billion<br />

(US$55 billion) in tourism (earnings).<br />

“This means the industry will grow by<br />

three times and tourism will contribute<br />

RM3 billion in receipts per week to the<br />

country in 2020.”<br />

Of the 12 initiatives identified to achieve<br />

this target, one of them involves improving<br />

the rates, mix and quality of hotels. In<br />

response, hotels are also pulling out the<br />

stops to attract higher-spending clientele.<br />

With the recently completed rebranding<br />

of the Genting Hotel to Maxims<br />

Genting, Resorts World Genting (RWG)<br />

is now gearing towards the luxury market.<br />

RWG marketing manager Andrew Leong<br />

said: “We run at an average occupancy rate<br />

of 95 per cent year round. With demand<br />

outstripping supply, the natural trend was<br />

to go upmarket.”<br />

Rates start from RM500 and RM900 a<br />

night depending on the season, compared<br />

to RM280 and RM480 previously.<br />

The property’s pride is the Royal Suite.<br />

“As the most exclusive of all our suites<br />

and residences, the Royal Suite has five<br />

bedrooms, which make up a total of<br />

(1,207m 2 ),” said Leong.<br />

“This suite also has an outdoor garden<br />

where private functions can be hosted. It<br />

even has its own helipad for guests to arrive<br />

and leave in style – weather permitting<br />

– with the guarantee of privacy,” he<br />

added.<br />

Singapore, China, India and the Middle<br />

East continue to be Maxims Genting’s<br />

core markets.<br />

Near Ipoh, The Banjaran Hotsprings<br />

Retreat opened last year as a five-star sanctuary<br />

consisting of 25 luxury villas. Located<br />

in a valley and spanning more than<br />

six hectares, it has gained a reputation for<br />

programmes based on Malay, Chinese and<br />

Indian spa and wellness traditions, espe-<br />

Luxury touches at the Maxims Genting<br />

cially with its own hot springs.<br />

“Rates for a villa start from RM1,800,”<br />

said Carl Selvarajah, spokesperson for The<br />

Banjaran. “Our target markets include<br />

Singapore, Japan, India, China and more<br />

recently, the Middle East,” he added.<br />

The property is also hosting French celebrity<br />

chef and owner of Pousse Pousse<br />

restaurant in Paris, Lawrence Aboucaya,<br />

for two weeks in October to introduce<br />

organic vegetarian cuisine to customers,<br />

Courtesy of Maxims Genting<br />

said Selvarajah.<br />

Meanwhile, the premier Datai Langkawi,<br />

which is now managed by Archipelago<br />

Hotels and Resorts, is adding 14 beach<br />

villas to its property. Construction, which<br />

started in July, is scheduled for completion<br />

in November 2012.<br />

Berjaya Hotels & Resorts also rebranded<br />

Berjaya Redang Resort as the Taaras<br />

Beach & Spa Resort in July and handed<br />

over management to the Taaras Luxury<br />

Group.<br />

“As a result of this transition, rates have<br />

gone up,” said Mayflower Acme Tours<br />

head-inbound division, international<br />

sales, Andy Soo. “The facilities are also<br />

different, as they have moved into making<br />

the resort a spa destination.”<br />

Soo said most of the recent developments<br />

involved smaller properties catering<br />

to a niche market.<br />

“They are in line with the government’s<br />

ETP (economic transformation<br />

programme). While they are expensive,<br />

the pick-up rate is not too bad. We have<br />

takers,” he added.

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